17/07/17

DBS Group plans US dollar Green bond debut

Hong Kong (Reuters) -- HONG KONG, July 17 (IFR) - DBS Group Holdings, rated Aa2/AA- (Moody’s/Fitch), has hired banks for a potential offering of US dollar Green bonds, which would be the first offshore issue of this kind from a Singapore issuer.

The bank plans to sell 144A/Reg S five-year fixed and/or floating-rate senior unsecured Green benchmark bonds off its global medium-term note programme.

DBS Bank is sole global coordinator as well as joint bookrunner with Credit Agricole, HSBC, ING, Natixis, Societe Generale and Wells Fargo Securities.

The Singapore banking group will hold global investor conference calls today and potentially tomorrow.

The proposed notes are expected to be rated Aa2/AA- (Moody’s/Fitch), in line with the issuer.

Proceeds will be allocated towards the financing of green projects or assets fitting the eligibility criteria in the DBS Green Bond Framework.

The DBS Green Bond framework is structured in accordance with the ICMA Green Bond Principles, and has a second opinion from Sustainalytics.

DBS Bank is the sole green structuring agent and EY is the assurance provider for the issuance.

In April, City Developments sold Singapore's first Green bond, a S$100 million ($73 million) two-year note, with proceeds used to repay a loan which financed the upgrading of its Republic Plaza building.

Singapore has been trying to promote Green bond issuance. In March, the Monetary Authority of Singapore announced that it would offer a grant of up to S$100,000 per issue to offset expenses incurred in obtaining an external review of Green bonds, as part of plans to promote sustainability-oriented benchmarks, funds and products.